Capacity Planning In Zara
OPER 1027 Term 1 Assessment
Case study 1-Capacity Planning in Zara
Zara is one of the famous brands of the Spanish retail group. It sells up-to-the-minute 'fashionability' at low prices, in stores that are clearly focused on one particular market. (Slack, Chambers, Betts, & Johnson, 2006)
The first store opened almost by accident in 1975 due to a large pyjamas order cancellation. But now, the holdings group included Zara and the other branded chains Pull and Bear and Massimo Dutti, which have over 1,300 stores in 39 countries with sales of over €3 billion.
Zara outsources products of high labour intensive processes but maintains good qualities of items. To compare with the traditional industry, those exclusive brands only focus on two collections in a year. But Zara takes less than two weeks for an item produce from Zara's design team in Spain to a Zara store, as much as 12 times faster than the other exclusive brands of retails shop.
Christopher, Lowson and Peck (2004), defined the fashion markets as having short life-cycles, being high volatile with low predictability and also the buying decision are made by impulse. Zara frequently change the trend market and consumer by its own retail network. The rapid turnover environment give customer relationship between Zara and shoppers is strengthened by, instead of offering VIP services and discounts.
Design
Zara mainly targets on young and female customers and acceptable prices are offered (Christopher 2005 p58). The designers (of average age 26) design and discuss with market specialist and buyers who place order to the suppliers.
On the other hand the huge number of designs reflects the ability to meet almost all the fashion requirements by customers of all ages (up to 55). This adaptive model rather than traditional merchandising is very different from its competitors. Many competitors rely on a small elite design team that plans both design and production needs well in advance. Stores have little autonomy
Case study 1-Capacity Planning in Zara
Zara is one of the famous brands of the Spanish retail group. It sells up-to-the-minute 'fashionability' at low prices, in stores that are clearly focused on one particular market. (Slack, Chambers, Betts, & Johnson, 2006)
The first store opened almost by accident in 1975 due to a large pyjamas order cancellation. But now, the holdings group included Zara and the other branded chains Pull and Bear and Massimo Dutti, which have over 1,300 stores in 39 countries with sales of over €3 billion.
Zara outsources products of high labour intensive processes but maintains good qualities of items. To compare with the traditional industry, those exclusive brands only focus on two collections in a year. But Zara takes less than two weeks for an item produce from Zara's design team in Spain to a Zara store, as much as 12 times faster than the other exclusive brands of retails shop.
Christopher, Lowson and Peck (2004), defined the fashion markets as having short life-cycles, being high volatile with low predictability and also the buying decision are made by impulse. Zara frequently change the trend market and consumer by its own retail network. The rapid turnover environment give customer relationship between Zara and shoppers is strengthened by, instead of offering VIP services and discounts.
Design
Zara mainly targets on young and female customers and acceptable prices are offered (Christopher 2005 p58). The designers (of average age 26) design and discuss with market specialist and buyers who place order to the suppliers.
On the other hand the huge number of designs reflects the ability to meet almost all the fashion requirements by customers of all ages (up to 55). This adaptive model rather than traditional merchandising is very different from its competitors. Many competitors rely on a small elite design team that plans both design and production needs well in advance. Stores have little autonomy